ConocoPhillips (NYSE:COP)

Debt to Equity

The debt to equity ratio exhibits a notable downward trend from 0.51 in 2020 to 0.35 in 2022, followed by a slight increase stabilizing at 0.38 in both 2023 and 2024. When including operating lease liabilities, the pattern remains similar, starting at 0.54 in 2020 and decreasing to 0.36 in 2022, with a modest rise to 0.39 by 2024.

Debt to Capital

A consistent decline is observed in the debt to capital ratio from 0.34 in 2020 to 0.26 in 2022. Post-2022, the ratio sees a minor uptick to 0.28 in 2023, then slightly decreases to 0.27 in 2024. The inclusion of operating lease liabilities follows the same pattern, indicating a stable leverage profile in relation to the company's capital structure.

Debt to Assets

The debt to assets ratio decreases steadily from 0.25 in 2020 to 0.18 in 2022, reflecting reduced reliance on debt financing relative to total assets. This trend slightly reverses, reaching 0.20 in 2023 and remaining at that level through 2024. Incorporating operating lease liabilities reveals a marginally higher ratio but trends in a parallel manner.

Financial Leverage

Financial leverage decreases gradually from 2.1 in 2020 to 1.95 in 2022 and remains constant in 2023 before dropping further to 1.89 in 2024. This suggests the company is gradually reducing its use of debt relative to equity, indicative of a more conservative capital structure over the observed period.

Interest Coverage

Interest coverage demonstrates significant improvement from a negative figure (-2.9) in 2020 to a peak of 36.07 in 2022, indicating enhanced ability to meet interest obligations through operating earnings. However, this metric declines in subsequent years, falling to 21.88 in 2023 and 18.46 in 2024, though it remains well above the initial level, suggesting still strong coverage despite the downward movement.

Fixed Charge Coverage

This ratio follows a similar trajectory as interest coverage, starting at a negative value (-1.79) in 2020, improving significantly to 28.76 in 2022. It then decreases to 17.14 in 2023 and further to 13.34 in 2024. The downward trend post-2022 indicates some reduction in the company's buffer to cover fixed charges, although the ratio remains substantially positive and indicative of healthy financial performance compared to the starting point.

Over the period from December 31, 2020 to December 31, 2024, the financial data reveals several noteworthy trends in the capital structure.

Total Debt

Total debt increased overall, with a significant rise from 15,369 million US dollars in 2020 to 24,324 million US dollars in 2024. There was a peak in 2021 at 19,934 million US dollars, followed by a decline in 2022 to 16,643 million US dollars, and a subsequent rise again in 2023 and 2024.

Common Stockholders’ Equity

Common stockholders' equity demonstrated a consistent increasing trend throughout the period. Starting at 29,849 million US dollars in 2020, equity grew markedly to 64,796 million US dollars by the end of 2024, indicating an expanding capital base and potential reinvestment of earnings or additional equity issuance.

Debt to Equity Ratio

The debt to equity ratio showed a declining trend from 0.51 in 2020 to 0.38 in 2023, indicating a reduction in leverage relative to equity over the initial years. It stabilized at 0.38 in 2024, despite the increase in total debt in that year, due to the larger growth in equity.

In summary, although total debt fluctuated with an overall increase, the sharper growth in common stockholders’ equity led to a reduction and subsequent stabilization of the debt to equity ratio at a lower level than in 2020. This suggests a strengthening equity position relative to debt, reflecting potentially improved financial stability and a more conservative capital structure in the latter years.

Total Debt (Including Operating Lease Liability)

The total debt experienced an overall increasing trend over the five-year period. Starting at 16,154 million USD at the end of 2020, it rose substantially to 20,601 million USD by the end of 2021. This was followed by a decline to 17,188 million USD in 2022, but the debt level then increased again to 19,634 million USD in 2023 and reached the highest point at 25,348 million USD by the end of 2024.

Common Stockholders’ Equity

The equity showed a consistent upward trajectory throughout the period. From 29,849 million USD in 2020, it increased sharply in 2021 to 45,406 million USD, then continued to grow but at a more moderate rate in 2022 and 2023, reaching 48,003 million USD and 49,279 million USD respectively. The equity recorded a significant rise in 2024, reaching 64,796 million USD, the highest level observed during the period.

Debt to Equity Ratio (Including Operating Lease Liability)

This ratio generally decreased over the period, indicating a reduction in leverage relative to equity. Beginning at 0.54 in 2020, it declined to 0.45 in 2021 and further to 0.36 in 2022, reflecting a stronger equity base relative to debt. In 2023 and 2024, the ratio showed slight increases to 0.40 and 0.39 respectively, suggesting some increase in leverage but still maintaining a lower level than at the start of the period.

Total Debt

The total debt exhibited an overall increasing trend from 2020 through 2024. Starting at 15,369 million US dollars in 2020, the debt rose sharply to 19,934 million in 2021 before declining to 16,643 million in 2022. However, the debt increased again in the following years, reaching 18,937 million in 2023 and surging to 24,324 million by the end of 2024.

Total Capital

Total capital displayed a consistent upward trend over the five-year period. It began at 45,218 million US dollars in 2020 and experienced a substantial increase to 65,340 million in 2021. Slight fluctuations followed, with a minor decline to 64,646 million in 2022, then an increase to 68,216 million in 2023, and a significant rise to 89,120 million by 2024.

Debt to Capital Ratio

The debt to capital ratio demonstrated a declining trend from 2020 to 2022, decreasing from 0.34 to 0.26, indicating a reduction in financial leverage relative to total capital. In subsequent years, 2023 and 2024, the ratio held relatively stable around 0.27 to 0.28, suggesting the company maintained a steady leverage position despite rising absolute debt levels.

Summary

Overall, the data reveals that while the absolute amount of total debt has generally increased, the company's total capital has grown at a faster pace, leading to a lower or stable debt to capital ratio over the observed period. This trend may imply an effort to manage financial risk by increasing capital base alongside higher debt, thereby maintaining a balanced leverage profile.

Total debt (including operating lease liability)

The total debt exhibits a fluctuating upward trend over the five-year period. Initially, there was a significant increase from approximately 16.15 billion USD in 2020 to 20.60 billion USD in 2021, representing a sharp rise in debt levels. This was followed by a decrease to around 17.19 billion USD in 2022, indicating some debt reduction or repayment activities. However, the debt level increased again to 19.63 billion USD in 2023 and reached its highest point at 25.35 billion USD in 2024. Overall, the total debt shows variability with an overall rising trajectory, culminating in a notable increase in the final year.

Total capital (including operating lease liability)

Total capital also shows an increasing trend over the years. Beginning at 46.00 billion USD in 2020, it surged significantly to 66.01 billion USD in 2021, marking a strong capital expansion. Following this, capital remained relatively stable, with a slight decrease to 65.19 billion USD in 2022 before recovering to 68.91 billion USD in 2023. In 2024, total capital increased substantially again to 90.14 billion USD, a notable rise compared to previous years. This pattern indicates consistent growth in the company’s capital base, with some minor fluctuations mid-period.

Debt to capital ratio (including operating lease liability)

The debt to capital ratio demonstrates a declining trend from 0.35 in 2020 to a low of 0.26 in 2022, suggesting an improved capital structure with reduced leverage during this period. This improvement might be linked to the reduction in debt and the relatively stable or increasing capital base. However, post-2022, the ratio increased slightly to 0.28 in both 2023 and 2024, indicating a modest rise in leverage relative to capital. Despite this increase, the ratio remains below the initial 2020 level, showing that the company’s financial leverage has generally improved across the entire time frame.

Total debt

The total debt showed an overall upward trend over the five-year period. Starting at $15,369 million at the end of 2020, it increased significantly to $19,934 million by the end of 2021. It then decreased to $16,643 million in 2022 but rose again in the subsequent years to reach $24,324 million by the end of 2024. This pattern indicates fluctuations in the company's borrowing levels, with a notable increase in debt in the most recent year.

Total assets

Total assets exhibited a consistent growth trend throughout the period. Beginning at $62,618 million at the end of 2020, total assets rose markedly to $90,661 million in 2021 and continued to climb steadily in the following years, reaching $122,780 million by the end of 2024. This steady increase suggests ongoing asset accumulation or valuation growth within the company.

Debt to assets ratio

The debt to assets ratio decreased from 0.25 in 2020 to 0.18 in 2022, suggesting an improvement in the company's leverage position relative to asset size. However, in 2023 and 2024, the ratio stabilized at around 0.20, indicating that although debt levels increased, assets also grew proportionally, maintaining a relatively stable leverage ratio in the last two years.

Total Debt (including operating lease liability)

The total debt showed fluctuations over the analyzed period. Starting at 16,154 million USD at the end of 2020, it increased to 20,601 million USD in 2021. Subsequently, there was a decline to 17,188 million USD at the end of 2022. However, debt levels rose again in the following years, reaching 19,634 million USD by the end of 2023 and further increasing significantly to 25,348 million USD by the end of 2024. This indicates a pattern of debt management with periods of both reduction and substantial increase, especially notable in the last reported year.

Total Assets

Total assets exhibited a consistent upward trend throughout the period. Beginning at 62,618 million USD at the end of 2020, assets grew sharply to 90,661 million USD in 2021. Growth continued at a steadier pace with 93,829 million USD in 2022 and 95,924 million USD in 2023. The most considerable increase occurred by the end of 2024, with total assets reaching 122,780 million USD. This steady expansion reflects ongoing investment or accumulation of assets over the years, culminating in a significant asset base expansion in the latest year.

Debt to Assets Ratio (including operating lease liability)

The debt to assets ratio declined from 0.26 at the end of 2020 to 0.23 in 2021 and further decreased to 0.18 in 2022, indicating an improvement in leverage or relative reduction in debt compared to assets during these years. However, the ratio experienced a slight increase to 0.20 in 2023 and a further moderate rise to 0.21 in 2024. Despite the recent uptick, the overall ratio remains below the initial 2020 level, suggesting that although debt increased notably in the last two years, asset growth helped moderate the leverage position.

Total Assets

The total assets showed a strong upward trajectory over the five-year period. Starting at approximately 62.6 billion USD in 2020, there was a substantial increase to around 90.7 billion USD in 2021. Growth continued at a slower but steady pace through 2022 and 2023, reaching close to 95.9 billion USD, before rising sharply again to nearly 122.8 billion USD in 2024. This pattern indicates significant asset expansion, particularly notable between 2023 and 2024.

Common Stockholders’ Equity

Common stockholders' equity followed a similar upward trend, reflecting growth in the company’s net worth attributable to shareholders. Beginning at approximately 29.8 billion USD in 2020, equity increased markedly by 2021 to 45.4 billion USD. The subsequent years showed continued growth, albeit at a more moderate rate, reaching approximately 49.3 billion USD in 2023. The most recent year saw another substantial increase to nearly 64.8 billion USD in 2024, reinforcing the overall strengthening of shareholder equity alongside total asset increments.

Financial Leverage

The financial leverage ratio demonstrated a gradual but consistent decline from 2.1 in 2020 to 1.89 in 2024. This decreasing trend in leverage suggests a relative reduction in debt usage compared to equity over time. The ratio remained relatively stable between 2021 and 2023, with minor fluctuations around the 1.95 mark, before easing further in the last reported year. This indicates a potential shift towards a more conservative capital structure, emphasizing equity financing and potentially reducing financial risk.

Earnings before interest and tax (EBIT)

The EBIT demonstrated a significant recovery and growth from 2020 to 2022. Starting with a negative value of -2,334 million US dollars in 2020, it increased sharply to 13,596 million in 2021 and further more than doubled to 29,033 million in 2022. However, after this peak, EBIT declined in the subsequent years, falling to 17,068 million in 2023 and further decreasing to 14,455 million in 2024. This trend indicates a strong rebound followed by a contraction phase.

Interest and debt expense

The interest and debt expense remained relatively stable over the five-year period. The values fluctuated slightly, starting at 806 million US dollars in 2020, increasing marginally to 884 million in 2021, and then gradually declining to 805 million in 2022. The expense continued a mild downward trend, recording 780 million in 2023 and 783 million in 2024. Overall, the interest expenses exhibited minimal volatility.

Interest coverage ratio

The interest coverage ratio experienced a substantial improvement from 2020 through 2022, reflecting increased earnings relative to interest costs. It was deeply negative at -2.9 in 2020, indicating an inability to cover interest expenses with operating earnings. This ratio then surged dramatically to 15.38 in 2021 and peaked at 36.07 in 2022, showcasing strong operational profitability and sufficient coverage. However, similar to EBIT, this ratio decreased in the following years to 21.88 in 2023 and further to 18.46 in 2024, although it remained at a healthy level above 1, indicating continued ability to cover interest expenses despite the decline.

Earnings before fixed charges and tax

The earnings before fixed charges and tax displayed a significant turnaround from a negative value of -2013 million US dollars in 2020 to a substantial positive value of 13874 million in 2021. This positive trend continued into 2022, reaching a peak of 29245 million, followed by a decline in 2023 and 2024 to 17297 million and 14780 million respectively. Despite the decrease in the last two years, earnings remained considerably higher than the 2020 baseline.

Fixed charges

Fixed charges remained relatively stable across the five-year period, fluctuating slightly between 1009 million and 1162 million US dollars. The lowest fixed charges were recorded in 2023 at 1009 million, while the highest were in 2021 at 1162 million. Overall, fixed charges demonstrated minor variability without a clear upward or downward trend.

Fixed charge coverage

Fixed charge coverage ratio showed a marked improvement from a negative ratio of -1.79 in 2020 to a strong positive ratio of 11.94 in 2021. The ratio peaked at 28.76 in 2022, indicating a significant ability to cover fixed charges with earnings. However, this coverage ratio declined in subsequent years to 17.14 in 2023 and further to 13.34 in 2024, yet remaining well above the 2020 level, suggesting sustained but reduced coverage capacity.